Your company sells 20,000 gal of fuel to a customer for $3.00/gal on April 1, 2019. The fuel ships to the customer immediately. The customer agrees to pay cash for it 30 days later (on May 1, 2019).

What is the cash flow on May 1, 2019?

What is the cash flow on April 1, 2019?

What is the net income from this transaction on April 1, 2019?

(d) How much has the accounts receive-able changed by on April 1, 2019?

(e) On April 1, 2019 will both sides of the balance sheet increase, stay the same or decrease as a result of this transaction alone?

(f) How much has the inventory of the seller changed by on April 1, 2019? When giving your answer state whether it has increased (by how much in $), stayed the same or decreased (by how much in $).

(g) On May 1, 2019 how much does A/R change by (give your answer in $ and indicate whether it is an increase, stays the same or a decrease)?

(h) On May 3, 2019 the company uses the cash from the fuel transaction to pay down debt. Will both sides of the balance sheet increase, decrease or stay the same?